Layoff Letter due to Lack of Work

A layoff letter is a letter of termination in which termination is made not on the grounds of employee functionality or performance, rather a layoff is made completely on the grounds of the company’s performance intrusion.

Layoff letter due to lack of work is written to the employees when there is not enough work as compared to the number of employees working. For certain reasons, during a period of time, the number of contracts, clients, customers, or market share can go down due to which a company or an organization may face a lack of work.

Lack of work might be due to many reasons and it impacts the company’s structure of working. When there would be less profit and more employees to be paid, the company would be at loss. To avoid a situation like that the company, in most cases, makes layoffs that can be either of permanent nature or of temporary depending on the circumstances and quantity of lack of work faced by the company.

While making layoffs, there is a dire need to write an empathetic piece of writing to inform the bad news. It is a very stressful experience for both i.e. for employers and employees. Employer stresses out due to the circumstances faced by the company in which he has to terminate some of the very brilliant and competent minds. Employees stress out due to termination and sudden unemployment.

Two sample letters are given following in which the company is making layoffs due to lack of work.

Sample Letter -1

Re. Layoff due to Lack of Work

Dear Benjamin,

I regret to inform you that company is making layoffs on a permanent basis. This layoff is made due to the lack of work in the company. Due to the lockdown situation, the company’s clientage has been affected a lot. The company bore a loss of $40,000 due to the imbalanced situation created due to more workers and less work.

In this situation, the company concluded that layoff is important for a company’s survival. To lessen the stress in your head the company has decided to pay you next month’s salary including fringe benefits. During this period you can find some other work to make your livelihood well. Due to the sudden fall in contracts, clientage ad customers, we are compelled to do so. Viewing this situation, the number of creditors has also fallen short and the loss would be at a few heads.

I am sure you will understand and respect the company’s decision. For further you are free to meet our Managing Director, Emily Ester, or write to the HR department on [Email].

Thank you.



File: Word (.docx) 2007+ and iPad
Size 18 Kb


Sample Letter -2

Re. Temporary Layoff based on Lack of Work

Dear Aster,

I am Emily Joe, the General Manager from GHK Group of Companies, having both bad and good news for you. The bad news is you are being terminated in the wake of the company’s decision to execute employees’ layoff due to lack of work.

Due to the prevailing situation of the pandemic and the lockdown implicated by most of the states to slow down the spread and hazardous impact of coronavirus, clientage, and purchasing has fallen short to a greater extent. In the wake of the above-mentioned situation, to avoid huge losses at the company’s end, the Director along with CEO has decided to execute employees’ layoffs, undoubted a decision impelled due to the circumstances.

As we all know this pandemic has exacerbated permanent closure of businesses and workers’ layoff, our company, understanding things at the employees’ end, has decided to make this layoff of a temporary nature. Though the time period of this layoff is unknown, Mr. Siegal has assured that the layoff is complete of temporary nature which will be effective from 20th April 20XX. Moreover, you will be informed about a small meeting with the CEO and Managing Director via email by HR Manager of the company.

I hope you will understand the situation and stand by the company’s decision. To fulfill all the legal procedures, the company has addressed its lawyer and the decision is made considering all legalities. For further, you can reach us by calling at [X] or write to [Email].

Thanks for your cooperation.



File: Word (.docx) 2007+ and iPad
Size 20 Kb